28 Tex. Admin. Code § 15.101 - Licensing of Surplus Lines Agents
(a) Persons
performing any of the following surplus lines insurance activities are required
to have a surplus lines agent license:
(1)
supervising unlicensed staff engaged in activities described in subsection (b)
of this section, although unlicensed intermediary supervisors may supervise
unlicensed staff engaging in these activities if the ultimate supervisor is
licensed;
(2) negotiating,
soliciting, effecting, procuring, or binding surplus lines insurance contracts
for clients or offering advice, counsel, opinions, or explanations of surplus
lines insurance products to agents or clients beyond the scope of underwriting
policies or contracts, except for a general lines property and casualty agent
making a referral of surplus lines business to a surplus lines agent that then
completes the surplus lines transaction; or
(3) receiving any direct commission or
variance in compensation based on the volume of surplus lines premiums taken
and received from, or as a result of, another person selling, soliciting,
binding, effecting, or procuring surplus lines insurance policies, contracts,
or coverages, except for a general lines property and casualty agent making a
referral of surplus lines business to a surplus lines agent that then completes
the surplus lines transaction.
(b) The following activities, if supervised
by a surplus lines agent, do not require a surplus lines agent license if the
employee does not receive any direct commission from selling, soliciting,
binding, effecting, or procuring insurance policies, contracts, or coverages,
and the employee's compensation is not varied by the volume of premiums taken
and received:
(1) full-time clerical and
administrative services, including, but not limited to, the incidental taking
of information from clients; receipt of premiums in the office of a licensed
agent; or transmitting to clients, as directed by a licensed surplus lines
agent, prepared marketing materials or other prepared information and materials
including, without limitation, invoices and evidences of coverage;
(2) contacting clients to obtain or confirm
information necessary to process an application for surplus lines insurance so
long as the contact does not involve any activities for which a license would
be required under subsection (a)(2) of this section;
(3) performing the task of underwriting any
insurance policy, contract, or coverage, including and without limitation,
pricing of the policy or contract; or
(4) contacting clients, insureds, agents,
other persons, and insurers to gather and transmit information regarding claims
and losses under the policy to the extent the contact does not require a
licensed adjuster as set forth under Insurance Code Chapter 4101, concerning
Insurance Adjusters.
(c)
This section must not be construed to prohibit distribution of agency profits
to unlicensed persons, including shareholders, partners, and
employees.
(d) Before TDI issues a
surplus lines agent license, the applicant must submit the following:
(1) an appropriate, fully completed written
application; and
(e) Texas-resident applicants, and
nonresident applicants who do not hold a surplus lines license in their state
of residence or whose state of residence does not license Texas residents on a
reciprocal basis as determined by TDI, must meet all licensing requirements set
forth in Insurance Code Chapter 981, concerning Surplus Lines Insurance.
Nonresident applicants under this section must also comply with Insurance Code
§
4056.051, concerning
Application for Nonresident Agent License; Criminal History.
(f) Nonresident applicants who hold a surplus
lines agent license in good standing in the agent's state of residence and meet
the requirements of Insurance Code §
4056.052, concerning
Issuance of License to Nonresident Agent Licensed in Other State, must meet all
the licensing requirements of Insurance Code Chapter 981 to the extent that the
requirements are not waived by the commissioner under Insurance Code §
4056.055, concerning
Waiver of Requirements for Nonresident Agent Licensed in Other State or
Jurisdiction.
(g) Notwithstanding
any other subsection of this section, nonresident applicants are not required
to obtain a general property and casualty agent license if they meet the
requirements of Insurance Code §
981.203(a-1),
concerning Qualifications for Surplus Lines License.
(h) Each surplus lines agent license issued
to an agent will be valid for a term as established under Insurance Code §
4003.001, concerning
License Expiration, and Chapter 19, Subchapter I of this title (relating to
General Provisions Regarding Fees, Applications, and Renewals). The license may
be renewed by submitting a renewal application and a nonrefundable license fee
as specified by §
19.801 and §
19.802 of this title.
Notes
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